The UK continues to lose its market share as an international destination, as visitor figures fall despite an increase in global outbound travel.

According to figures from IPK International, global outbound travel increased by 6 per cent in the first eight months of 2007, while visitor numbers to the UK fell by 4.5 per cent during the third quarter of 2007.

The survey also indicates that inbound travel from the UK’s two largest markets, the US and Europe, will further decrease due to the current unstable economic climate.

The US dollar is currently worth around more than £2 while the sub-prime mortgage crisis will drive consumer confidence down further. The effects of the credit crunch are also felt in Europe, where travellers are constantly looking to travel to more exotic, and more affordable, destinations.

Stephen Dowd, chief executive of UKInbound, expressed his concerns over the figures and lamented the DCMS’ recent decision to cut VisitBritain funding.

He said: “With global oversupply of tourism products and demand from our two biggest markets almost certain to fall in the short term, UK tourism companies face stiff competition in the coming months.

“Now the culture secretary, James Purnell, has decided that our national tourist board will have to make-do with less money for international marketing after 11 years of stand still funding.”